Per Diem Employee Rights: Are You Entitled?
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In this guide
"Am I owed per diem for this trip?" is a genuinely different question depending on who you work for. There's no single national law guaranteeing it to every worker — but there are several routes by which you might be legally entitled to it, and it's worth knowing which one, if any, applies to you.
TL;DR
Per diem is not a universal legal right for private-sector employees under federal law, but you can still be entitled to it through your employment contract, a union agreement, or company policy. Federal employees and contractors, by contrast, are entitled to per diem by regulation. Denial without a documented reason usually breaches whatever agreement promised it in the first place.
Private-sector employees
Federal law (the Fair Labor Standards Act) does not require private employers to pay per diem or travel expense reimbursements, as long as any expenses that would bring an employee's effective pay below minimum wage are reimbursed. There's no blanket statutory right to a daily travel allowance in the private sector. However, if your employment contract, offer letter or company policy promises per diem, you are entitled to it under that agreement — the obligation comes from the contract, not from federal labour law directly.
Government employees and contractors
Federal employees who travel on official business are entitled to per diem at GSA rates under the Federal Travel Regulation — this is a genuine regulatory entitlement, not a discretionary company benefit. State and local government employees are typically covered by equivalent state travel regulations, which often mirror the federal GSA structure closely. Federal contractors are governed by the Federal Acquisition Regulation, which limits allowable travel billing to the GSA rate, as covered in our guide to per diem for government contractors.
| Employment type | Legal basis for per diem |
|---|---|
| Private-sector employee | Employment contract, offer letter, or company policy only |
| Federal civilian employee | Federal Travel Regulation (regulatory entitlement) |
| Federal contractor | FAR 31.205-46, tied to GSA rates as a billing ceiling |
| Union-covered worker | Collective bargaining agreement terms |
Per diem entitlement by employment type
Union-covered workers
Many collective bargaining agreements specify per diem amounts explicitly, usually at or above the GSA rate. If you are covered by a union contract, check the travel and reimbursement provisions directly — per diem is often guaranteed under the agreement, and the negotiated rate may be higher than your employer's standard non-union policy.
“Nothing in this Act shall excuse noncompliance with any Federal or State law or municipal ordinance establishing a minimum wage higher than the minimum wage established under this Act.”
— Fair Labor Standards Act, U.S. Department of Labor, dol.gov
When per diem can legitimately be withheld
- You didn't submit an expense report or documentation of the trip, as most policies require.
- The trip wasn't pre-approved, where company policy requires pre-approval for travel.
- You stayed with family instead of a hotel and the policy specifically requires an actual lodging expense to trigger the lodging portion.
- You cancelled or shortened a trip and per diem was already paid in advance for days you didn't ultimately travel.
What to do if your per diem is denied
Start with your company's written expense policy and HR department — most denials trace back to a missing document or an unmet approval step that's easy to fix. If the denial contradicts a written policy or contract, raise it in writing and reference the specific clause. For government employees and contractors, disputes may be addressed through the contracting officer or your agency's travel office, which has a formal process for exactly this kind of disagreement.
Is my employer legally required to pay per diem?
Not under federal law generally, unless a specific contract, union agreement or written policy promises it — in which case you're entitled to it under that agreement, not federal labour law directly.
Are federal employees always entitled to per diem?
Yes, when travelling on official government business — it's a regulatory entitlement under the Federal Travel Regulation, not a discretionary benefit.
Can my per diem be denied for staying with family instead of a hotel?
Possibly, if your company's policy specifically ties the lodging portion to an actual hotel expense rather than paying it as a flat allowance regardless of accommodation type.
What should I do first if per diem is wrongly denied?
Check your written company policy or employment contract for the specific promised terms, then raise the discrepancy with HR or your manager in writing, citing the relevant clause.
Calculate it now
Use the free GSA per diem and IRS mileage calculators.